GELSENKIRCHEN - Schalke 04's veteran striker Raul said the German underdog can afford to dream of the Champions League final after setting up a semifinal clash with giant Manchester United.

Schalke is in the last four of European soccer's premier domestic competition for the first time in its history after knockingout holder Inter Milan in Wednesday's quarterfinal.

Having won the first-leg 5-2 at Inter's San Siro stadium last week, Schalke finished the job off with a 2-1 win at its Veltins Arena stadium.

"It is a special moment, it is the first time we have been in the semifinals in our history," said the 33-year-old Raul, who won the Champions League three times with Real Madrid.

"Nothing is impossible in football, so even against Manchester United, why can't we dream of the final?"

Raul opened the scoring on the stroke of half-time on Wednesday to extend his record Champions League tally to 71 goals while Inter midfielder Thiago Motta levelled minutes after the restart.

Defender Benedikt Hoewedes put the matter beyond doubt with a late winner.

Having knocked out Valencia in the Round of 16 and now holders Inter on their way to the semifinals, Raul said the sky is the limit for Germany's Royal Blues with the final at Wembley on May 28.

"It's an incredible situation, you have to see that Valencia thought they were going to win against us and then so did Inter," said Raul.

"I do hope Madrid get through to the final and we get to play against them, but we need to focus on the semifinal."

Inter coach Leonardo was gracious in defeat.

"Schalke deserved the win," said the Brazilian.

"They were the better team over the two legs and we were a bit tired. We have played a lot of football in the league and we showed it.

"They have a chance against Manchester United, it will depend on what happens on the day."

Schalke coach Ralf Rangnick warned his team will be the underdog against Manchester.

"The team has been rewarded with this victory, this is an extraordinary evening, but we will be underdogs against Manchester United," said Rangnick.

"The team has produced two great performances. If you only allow the Champions League winners just two chances, you know you have done well.

"Every player worked for his teammates and that was the key to our success. The boys can be proud of their achievement."

Schalke will host United on April 26 in the firstleg of the semifinal, with the return leg at Old Trafford on May 4.

Agence France-Presse